American Pacific Mining Positioned to Benefit from Growing US Copper Demand Driven by Tariff Uncertainty

Rhea-AI Summary

American Pacific Mining (USGDF) highlights its strategic position amid potential US copper tariffs and growing domestic demand. The company reports that US copper futures premiums have reached over $800 per tonne above London prices, the highest since early 2020.

The company's Palmer Copper-Zinc Project in Alaska reported significant drilling results, including intercepts of up to 43.8m grading 6.54% Cu. The updated mineral resource estimate shows Indicated resources of 4.77M tonnes at 1.69% copper and Inferred resources of 12M tonnes at 0.57% copper.

The Madison Copper-Gold Project in Montana, which previously produced 2.7M pounds of copper at 20-30% grades, showed recent drill highlights including 8.14m of 3.66% Cu. Underground sampling returned grades up to 45.50% Cu. With $16M in treasury, the company plans a Phase II 3,000-metre drill program at Madison starting in March.

Positive

• Strong treasury position of $16M as of January
• High-grade copper intercepts at Palmer up to 6.54% Cu over 43.8m
• Significant resource update at Palmer with 4.77M tonnes Indicated
• Madison historic production of 2.7M lbs copper at 20-30% grades
• Strategic positioning for potential US copper tariffs

Negative

• Palmer's Inferred resource shows lower grades (0.57% Cu) compared to Indicated (1.69% Cu)
• Dependent on implementation of copper tariffs for market advantage

Vancouver, British Columbia--(Newsfile Corp. - February 27, 2025) - American Pacific Mining Corp (CSE: USGD) (OTCQX: USGDF) (FSE: 1QC1) ("American Pacific" or the "Company") highlights the strengthening bull case for copper in light of recent US policy developments and how the Company's US-based copper assets are strategically positioned to benefit from these trends.

President Trump said on Sunday, that he would impose 25% tariffs on all steel and aluminum imports and also threatened to apply levies on imported copper. US metals prices, including copper, have been increasing with significant premiums ahead of potential tariffs on imports. This surge in domestic copper prices reflects growing concerns about supply constraints and highlights the increasing importance of US-based copper assets.

The Financial Times recently reported that premiums for US copper futures have widened to over US $800 per tonne above London prices, the highest level since early 2020, as US buyers compete to secure copper supplies in anticipation of potential tariffs. The US relies heavily on imports for its copper needs, emphasizing the value of domestic copper supply.

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Warwick Smith, CEO of American Pacific, commented: "The current market dynamics and US policy trends underscore the strategic value of our US-based copper assets. With projects like our Madison Copper-Gold project in Montana, and Palmer Copper-Zinc project in Alaska, we are well-positioned to potentially supply the growing domestic demand for copper, a critical metal for the US economy and clean energy transition."

Palmer Copper-Zinc VMS Project, Alaska

Last year, American Pacific reported the highest-grade copper intercepts ever drilled at its Palmer project, including:

• CMR23-172 Zone 1: 43.8 m grading 6.54% Cu, 3.15% Zn, 0.42 g/t Au and 27.97 g/t Ag (8.22% CuEq)

• CMR23-167 Zone 1: 37.1 m grading 4.57% Cu, 8.44% Zn, 0.50 g/t Au and 29.33 g/t Ag (8.40% CuEq)

• CMR23-169 Zone 1: 33.2 m grading 5.48% Cu, 7.22% Zn, 0.64 g/t Au and 36.78 g/t Ag (8.95% CuEq)

• CMR23-171 Zone 1: 23.9 m grading 9.03% Cu, 3.49% Zn, 0.83 g/t Au and 41.75 g/t Ag (11.15% CuEq)

Notes: Cu = copper; Au = gold; g/t = grams per tonne

Additionally, the Company recently published an updated mineral Resource estimate on the project, which showed a substantial increase in contained copper (see January 20, 2025 news release).

Palmer 2025 Mineral Resource Estimate

• Indicated: 4.77 million tonnes at 1.69% copper, 5.17% zinc, 0.14% lead, 28.4 g/t silver, 0.29 g/t gold, 20.6% barite (3.5% copper equivalent or 13.2% zinc equivalent)

• Inferred: 12.00 million tonnes at 0.57% copper, 3.92% zinc, 0.47% lead, 66.3 g/t silver, 0.33 g/t gold, 25.5% barite (3.1% copper equivalent or 8.9% zinc equivalent)

Madison Copper-Gold Project, Montana

The high-grade Madison Project was host to small-scale production in the early 2000s with 2.7 million pounds of copper produced at grades ranging from 20-30% copper. Historic drill highlights include:

• 8.47 metres of 40.03% Cu

• 61.63 metres of 6.97% Cu

More recent drilling returned additional high-grade intercepts which confirmed the presence of widespread mineralization beyond what was historically mined (see September 23, 2024 news release).

Phase I 2024 Drill Highlights:

• 8APMMAD24-09: 8.14 metres of 3.66% Cu, 29.72 metres of 2.09% Cu and 9.75 metres of 1.56% Cu, within a broader 75.13-metre zone of 0.98% Cu

• APMMAD24-08: 2.90 metres of 2.41% Cu and 3.17 g/t Au

• APMMAD24-06: 12.34 metres of 0.88% Cu and 10.36 g/t Au

Underground sampling of the old mine workings also returned high grades (see September 26, 2024 news release).

Sample Highlights:

• MADZH24-003: 45.50% Cu and 2.17 g/t Au

• MADZH24-001: 31.00% Cu and 8.40 g/t Au

• MADZH24-002: 23.30% Cu and 1.90 g/t Au

• MADZH24-004: 3.19% Cu and 0.14 g/t Au

With $16 million in its treasury as of January, American Pacific is well funded to advance its projects and is expected to commence a Phase II 3,000 metre drill program at its high-grade Madison project beginning in March. Phase II and III drilling programs also aim to test deeper regional targets identified through comprehensive field mapping and rock sampling.

About American Pacific Mining Corp.

American Pacific Mining Corp. is a precious and base metals explorer focused on opportunities in the Western United States. The Company has two flagship assets: the Madison Project, a high-grade past-producing copper-gold project in Montana; and the Palmer Project, a copper-zinc Volcanic Massive Sulphide-Sulphate (VMS) project in Alaska. For the Madison transaction, American Pacific was selected as a finalist in both 2021 and 2022 for 'Deal of the Year' at the S&P Global Platts Metals Awards, an annual program that recognizes exemplary accomplishments in 16 performance categories.

Also, in American Pacific's asset portfolio are high-grade, precious metals projects located in key mining districts in Nevada, USA, including the Ziggurat Gold Project and the Tuscarora Gold-Silver District. The Company's mission is to grow by the drill bit, strategic partnerships, and M&A.

On behalf of the American Pacific Mining Corp Board of Directors:

Warwick Smith, CEO & Director
Corporate Office: Suite 910 - 510 Burrard Street
Vancouver, BC, V6C 3A8 Canada

Investor relations contact:

Kristina Pillon, High Tide Consulting Corp.
604.908.1695 / Kristina@americanpacific.ca

Media relations contact:

Adam Bello, Primoris Group Inc.
416.489.0092 / media@primorisgroup.com

The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/242574

FAQ

What are the latest drilling results from USGDF's Palmer Copper-Zinc Project?

The highest-grade intercept was 43.8m grading 6.54% Cu, 3.15% Zn, 0.42 g/t Au and 27.97 g/t Ag (8.22% CuEq) in hole CMR23-172.

What is the current mineral resource estimate for USGDF's Palmer Project as of 2025?

Palmer's Indicated resources are 4.77M tonnes at 1.69% copper, and Inferred resources are 12M tonnes at 0.57% copper.

How much copper did USGDF's Madison Project historically produce?

The Madison Project produced 2.7 million pounds of copper at grades between 20-30% copper in the early 2000s.

What are USGDF's plans for the Madison Project in 2025?

USGDF plans to commence a Phase II 3,000-metre drill program at Madison in March 2025, funded by their $16M treasury.

What is the current premium for US copper futures according to USGDF?

US copper futures premiums have widened to over US $800 per tonne above London prices, the highest level since early 2020.